Spectrum to buy Stanley Black & Decker's Hardware & Home Improvement Group

Spectrum Brands (SPB) has signed a definitive agreement to acquire the Hardware & Home Improvement Group of Stanley Black & Decker, Inc. (SWK) for $1.4B in cash. The acquisition is expected to increase Spectrum Brands’ top-line growth and margins, and to be immediately accretive to EPS, EBITDA and free cash flow before synergies. EPS accretion pro forma for a full year of results is expected to be between 75c-80c per share in fiscal 2013 and EPS accretion in fiscal 2014 is expected to exceed $1.00 per share, excluding one-time transaction and integration costs and including synergies. The acquisition also is expected to add more than an incremental $90M of free cash flow in the first two years after closing.